United States Government Accountability Office: Status of GAO's
Human Capital Transformation Efforts (22-MAY-07, GAO-07-872T).
The subcommittees asked the Comptroller General of the United
States to discuss recent human capital reform efforts at the U.S.
Government Accountability Office (GAO). In 2004, GAO conducted
its first ever market-based compensation study after laying the
necessary foundation by implementing a modern, competency-based
performance management system. GAO hired a top compensation
consulting firm on a competitive basis to conduct a market-based
pay study using generally accepted approaches and based on
independent and professional judgment. As a result of the study,
the 2006 pay ranges for about 25 percent of GAO's employees were
raised and about 10 percent of GAO's employees were determined to
be paid above market levels based on their roles,
responsibilities, and/or relative performance. No GAO employee
has had his or her pay cut as a result of GAO's classification
and compensation changes. Still, GAO's approach to market-based
pay and related Band II restructuring efforts, which were very
challenging and likely unprecedented in government, have been the
source of considerable attention and some controversy.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-872T
ACCNO: A69832
TITLE: United States Government Accountability Office: Status of
GAO's Human Capital Transformation Efforts
DATE: 05/22/2007
SUBJECT: Comparative analysis
Employees
Human capital
Human capital management
Pay
Salary increases
Surveys
Performance management
Performance-based pay
GAO High Risk Series
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-07-872T
* [1]Organizational Results Measures
* [2]People Measures: Attracting and Retaining Staff
* [3]People Measures: Developing, Using, Leading, and Supporting Staff
* [4]Excerpts from Case Studies and Articles Highlighting GAO's Human
Capital System
* [5]Disposition of Band II Staff Initially Placed in Band IIA on
January 8, 2006 Projected Through 2012
* [6]GAO's Ranking among Large Federal Agencies, by Demographic Group
* [7]Examples of Employee Outreach Related to the Classification and
Compensation Review and Band II Restructuring Efforts
* [8]Comparison of GAO's 2007 Banded Salary Ranges with 2007 GS Levels
(All Steps) for the Washington/Baltimore/ Northern Virginia Locality
Area
* [9]GAO Analyst and Related Staff Compared with the 2000 Civilian Labor
Force (CLF) Data (Note: GAO data as of October 1, 2006)
* [10]GAO's Diversity Profile among Senior Analysts, Assistant
Directors, and SES Level
* [11]GAO's Mission
* [12]Obtaining Copies of GAO Reports and Testimony
* [13]Order by Mail or Phone
* [14]To Report Fraud, Waste, and Abuse in Federal Programs
* [15]Congressional Relations
* [16]Public Affairs
Testimony
Before Congressional Subcommittees
United States Government Accountability Office
GAO
For Release on Delivery Expected at 10:00 a.m. EDT
Tuesday, May 22, 2007
UNITED STATES GOVERNMENT ACCOUNTABILITY OFFICE
Status of GAO's Human Capital Transformation Efforts
Statement of David M. Walker, Comptroller General of the United States
GAO-07-872T
Chairman Akaka, Chairman Davis, and Members of the Subcommittees:
I appreciate the opportunity to appear before you today to discuss recent
human capital reform efforts at the U.S. Government Accountability Office
(GAO). As you know, GAO is in the performance and accountability business.
We try to improve economy, efficiency, effectiveness, ethics, and equity
within the federal government. I consider these important principles in
connection with all of my decision making relating to GAO. Furthermore,
because we are the ones who audit, investigate, and evaluate others, GAO
seeks to "lead by example" in every major management area, including the
human capital area. We are not perfect and we never will be, but we strive
to do what is right and to continuously improve.
Before I address our recent human capital changes, I would like to put
this issue in context. As you know, GAO put the issue of Human Capital
Strategy on our High-Risk List in 2001 as a governmentwide challenge. This
was due to a variety of factors including the following:
1. the downsizing of government in the 1990s,
2. hiring freezes in selected government agencies,
3. skills and knowledge gaps in many agencies,
4. governmentwide succession planning challenges, and
5. outdated human capital policies and practices within the
federal government.
Clearly the government's greatest asset is its employees. Such is
certainly the case at GAO. Therefore, all of our human capital reform
efforts need to be designed to attract and retain top talent within
current and expected resource levels.
Our recent transformation efforts at GAO, including our human capital
reforms, have been acclaimed by many and criticized by some. Such
criticism is not surprising, since transforming government is tough
business and most people don't like to change, especially when the change
may not be beneficial to them personally. This is especially true in
connection with major human capital reforms. At the same time, as
Comptroller General of the United States, I have a fiduciary and
stewardship responsibility to focus not just on today but also to do
what's right for tomorrow. This requires me, among other things, to focus
on what is in the collective best interest of all GAO's employees rather
than what might be in the narrow interest of some of GAO's employees. It
also requires me to consider which policies are appropriate to attract and
retain a topflight workforce while ensuring that such policies are both
affordable today and sustainable over the longer term.
With regard to our pay ranges, some of our employees have interpreted our
market-based pay determination as undervaluing their abilities and
contributions. Such is clearly not the case. GAO's workforce is highly
skilled and dedicated to our mission. We have over 3,000 valuable and
valued employees who work hard and make meaningful contributions to our
agency each and every day. We appreciate what each GAO employee does for
the Congress and the country. Our employees are working hard to make a
meaningful and lasting difference, and so am I.
The fact is when you are making tough transformational changes you cannot
make everybody happy. This is especially true when you are making changes
to an agency's classification and compensation systems. Nonetheless, it is
important for an agency's leadership to listen to the views of all
clients, employees, and other key stakeholders, and to seriously consider
all legitimate comments and concerns. At the same time, at the end of the
day, it is critically important for leaders to make difficult decisions
based on what they think is the right thing to do, even though it may not
be popular. This is the approach that we employ at GAO.
One aspect of our recent human capital changes is our movement to a more
market-based and performance-oriented pay system. Importantly, we are not
the only federal agency seeking to do so. As a result, I believe it is
important to compare what we have done and how we have done it to others
in order to provide context to your oversight and deliberations.
While our transformational human capital changes have required some
difficult adjustments, they, along with other key reforms, have helped us
to achieve record organizational results (see appendix I). Furthermore, we
have continued to achieve very positive results in connection with our key
people measures, including in connection with our annual employee feedback
survey (see appendices II and III). For example, based on the results of
our latest employee feedback survey, which was conducted after our
classification and compensation changes and Band II restructuring effort,
GAO was ranked number 2 among large federal employers in the most recent
"Best Places to Work in the Federal Government 2007" rankings.
Most employee concerns regarding our recent changes relate to the
implications of our moving to a more market-based, skills-, knowledge-,
and performance-oriented pay system. In 2004, we conducted our first ever
market-based pay study after laying the necessary foundation by
implementing a modern, competency-based performance management system. We
hired a top compensation consulting firm, Watson Wyatt, with extensive
public, private, and not-for-profit sector experience, through a
competitive process. Our related internal consultation effort involved a
variety of actions, including task teams, focus groups, "town hall
meetings," and meetings with our Employee Advisory Council. Watson Wyatt
conducted the market-based pay study using generally accepted approaches
and based on its independent and professional judgment. Importantly, for a
variety of reasons and at our request, the study did not consider employee
benefits in establishing pay ranges for GAO's employees. This resulted in
pay ranges that were somewhat higher than otherwise would have been the
case.
As a result of the study, the pay ranges for about 25 percent of our
employees were raised. In this regard, GAO's Executive Committee raised
several of the pay ranges proposed by Watson Wyatt to ensure our
competitiveness externally and to enhance equity internally. Importantly,
we did not lower any of the proposed ranges. This was good news for the
affected employees. However, the study also determined that while most
employees were paid within market ranges, about 10 percent of our
employees were paid above market levels based on their roles,
responsibilities, and/or relative performance. This was not good news for
the affected 10 percent, and some of them have been vocal in their related
complaints. As a result, our related restructuring efforts, which were
very challenging and possibly unprecedented in government, have been the
source of considerable attention and some controversy.
Our reforms, while very significant, are by no means perfect. Perfection
does not exist on this earth. We believe, however, that our actions have
been consistent with both the law and the important principles that I
outlined at the outset of my testimony. Our reforms also recognize the
need to modernize the federal government's human capital practices, given
21st century realities.
We believe we are the first major agency to implement broad banding;
market-based pay; and skills-, knowledge-, and performance-oriented pay
systems on an agencywide basis. As noted previously, this is a major
accomplishment, and our reforms have been the subject of many positive
case studies and articles by various organizations, academics, and others
on how to achieve tough transformation changes within the federal
government (see appendix IV). We are proud of what GAO has accomplished in
the human capital area, including our recent classification and
compensation system changes.
Nonetheless, as I have stated previously, in hindsight, I regret that
there were certain expectation and communication gaps that occurred in
connection with our initial implementation of market-based pay ranges and
related across-the-board pay adjustments in 2006. We have, however, taken
numerous steps to address this matter over the past year so that any such
gaps should no longer exist. Candidly, there is no easy way to tell people
that they are overpaid based on the market, their roles and
responsibilities, and possibly their relative performance. It is also
difficult to change from a system under which annual adjustments are
largely on autopilot to one that is more market- and performance-based.
At the same time, given the express statutory criteria that apply to GAO's
annual pay adjustments, our constrained budgets since 2003, and our
dedication to the principles of economy, efficiency, effectiveness,
ethics, and equity, we took steps that, as Comptroller General, I deemed
to be both prudent and necessary for GAO. Unfortunately, despite our
concerted and good faith efforts, there has been a lot of false or
misleading information circulated and reported about our classification
and compensation changes. In this regard, I'd like to set the record
straight in connection with several matters.
First and foremost, I know that some are concerned that I did not follow
through on certain assurances I made in 2003 during consideration of GAO's
Human Capital Reform Act, namely, that we would provide across-the-board
pay adjustments to GAO employees who received at least a "meets
expectations" rating. In late 2004, after we received the market- based
pay study, we were faced with the reality that some of our employees were
paid above market levels. This fact was not known when I testified in
2003. In retrospect, we should have advised the Congress and others sooner
that we did not view my prior statements as applying to employees who were
paid above market levels. I am sorry that we did not do that; however, the
fact remains that I did not believe then, nor do I believe now, that it
would be appropriate or equitable to provide across-the-board pay increase
to employees who are paid above market levels. The very notion that one
would provide across-the-board pay adjustments to those paid above market
is, in my opinion, fundamentally inconsistent with the very premise of a
market-based pay system and the concept of equal pay for work of equal
value. Again, while I regret that I did not clarify this point in a more
timely manner, I firmly believe that my exercise of judgment on this
matter has been fully consistent with the principles and criteria that
were under consideration in July 2003, when I testified, and that were
enacted into law in July 2004.
With regard to our recent Band II restructuring effort, the plain and
simple truth is that no GAO employee took a pay cut as a result of our
classification and compensation changes. Furthermore, all GAO employees
who were on board as of January 2006 were given the opportunity to earn
what they could have under the prior Band II pay system at the time of the
conversion
As you may know, GAO has a two-tiered annual pay adjustment system. The
first tier relates to the annual across-the-board pay adjustment that is
determined by the Comptroller General based on the statutory criteria that
I am required to consider; general market conditions; and certain other
factors (e.g., our budget). All employees who achieve a "meets
expectation" or higher rating on all applicable competencies and who are
paid within applicable market-based compensation limits, including
consideration of the Band IIB speed bump, receive this increase.^1 The
second tier is our supplemental performance-based compensation (PBC).
While the amount of this increase is also contingent on our budget, PBC is
based on how well an employee performs relative to his or her applicable
peer group.
While 308 GAO employees who performed at the "meets expectation" level or
better did not initially receive an across-the board-pay adjustment in
2006 because they were paid above market, this number decreased to 298 as
a result of the recent Personnel Appeals Board (PAB) settlement. Of this
number, only 47 employees did not receive any PBC for that year. Given
GAO's constrained budgets, the plain truth is that any funds allocated to
employees who are paid above market are funds that are not available for
allocation to employees who are not paid above market, who may be better
performers, and who may have more responsibility.
^1With regard to the speed bump, employees at the Band IIB level must meet
the criteria above, and they also must be in the top 50 percent of their
peer group if their salary exceeds the market-based speed bump. The speed
bump for staff at the Band IIB level is necessary, given the significant
degree of overlap in the salary ranges for Band IIB and Band III level
employees.
The number of employees who did not receive across-the-board pay
adjustments declined from about 10 percent of our total workforce in 2006
to about 5 percent in 2007. Furthermore, of the 139 employees who did not
receive across-the-board adjustments in 2007, only 2 did not receive any
PBC. Importantly, our limits on across-the-board pay adjustments for
certain Band IIA employees represent a temporary transition issue. As a
result, by the time that I leave office, we expect there no longer will be
any Band IIA employees performing at the "meets expectation level" or
better who do not receive an across-the-board pay adjustment (see appendix
V).
Some have asserted that morale at GAO is poor. This assertion is not
supported by the facts. While the morale of certain Band II employees
understandably went down in 2006 as a result of our Band II restructuring
effort, overall morale at GAO has risen by 33 percent from the levels when
I became Comptroller General. Furthermore, as noted previously, GAO was
recently ranked number 2 among all large federal agencies across
government in the "Best Places to Work in the Federal Government 2007"
rankings published by the Partnership for Public Service in cooperation
with American University. This ranking is based on the opinions of GAO
employees obtained after our classification and compensation changes and
Band II restructuring effort. Furthermore, GAO is also ranked highly by a
broad cross section of demographic groups (see appendix VI).
Contrary to assertions by some, GAO's rankings are based on responses to
the exact same questions as the ones used in the Office of Personnel
Management's (OPM) survey of executive branch agencies. Moreover, despite
what some have asserted, GAO employed an extensive outreach, employee
participation, and communication effort in connection with our
classification and compensation review and Band II restructuring effort.
We made a number of important adjustments to our approach based on
feedback we received from our employees. Our major agencywide efforts are
summarized in appendix VII. Many of these efforts involved a broad range
of GAO executives, including myself. The reality is that no matter how
many outreach and listening sessions we might have conducted, some
percentage of our employees would not have supported any proposed changes,
especially those individuals who were deemed to be paid above market.
Importantly, we have taken steps in the past year to provide additional
opportunities for pay increases to many employees. For example, all GAO
employees, including those who are paid above market levels, were eligible
for 100 percent of their PBC in 2007. In addition, all of their PBC was
added to their base pay up to applicable market-based pay limits. We have
also eliminated all pay range speed bumps other than the one applicable to
Band IIB employees. In addition, we will soon be submitting legislation
that will seek to enhance the pay and pension provisions applicable to our
employees. GAO's 2007 salary ranges, with comparisons to the most
applicable 2007 General Schedule (GS) ranges, are included in appendix
VIII.
Some have raised questions or criticized our market-based pay approaches
in ways that reflect a basic misunderstanding of how market-based pay
studies are conducted. These criticisms also reflect a lack of
understanding as to how the GS pay ranges are determined and updated.
Just because the GS system is widespread in the federal government and
persons have a better understanding of how they are likely to fare under
the system does not mean that it is appropriate, reflects modern
compensation practices, or that individuals are treated fairly based on
their skills, knowledge, and performance. On the basis of recent briefings
by officials from OPM and the Bureau of Labor Statistics (BLS), in my
view, the current GS system is outdated and is designed primarily to
reward length of service rather than performance. In addition, as we found
at GAO even before our Band II restructuring effort, performance
appraisals can be negatively correlated to pay for employees paid at the
cap for their applicable level.
Given the apparent widespread lack of understanding of the methodology
associated with establishing and updating the GS pay ranges, determining
related annual across-the-board pay adjustments, and other annual pay
adjustments, I believe there is a need to perform a review of the GS
system. I would like to do such a study at the request of your
subcommittees, but I am willing to do it under my statutory authority as
Comptroller General of the United States, if necessary. I look forward to
publishing the results of this work. In any event, we will keep you
informed as we conduct this work, and I hope that your subcommittees will
hold a hearing on the report after it is issued.
Some have questioned the degree of diversity in GAO's workforce. These
assertions do not stand up based on a comparison of GAO's workforce to
applicable civilian labor force data (see appendix IX), nor are they valid
based on the change in GAO's diversity profile over time (see appendix X).
As I have stated on many occasions, GAO is committed to maintaining a
diverse and high performing workforce with equal opportunity for all and
zero tolerance for discrimination of any type. We take a number of
affirmative steps and incorporate a number of important safeguards in
relation to all major human capital decisions to help ensure that we
achieve this important goal. Our recent decision to voluntarily contract
for an independent assessment of African-American employees' performance
ratings is unprecedented and serves to demonstrate our commitment in this
area.
Finally, on May 8, 2007, the International Federation of Professional and
Technical Engineers (IFPTE) filed a petition with the PAB to start the
process to organize and represent certain GAO employees. As I have said on
numerous occasions, I support the rights of our employees to organize and
have taken steps to ensure that GAO's management complies with applicable
labor laws. We are willing to support a timely election. However, GAO will
challenge any attempts by the union to organize supervisory or
confidential personnel. Ultimately, the PAB will be required to decide any
issues that are in dispute. We hope that this matter can be resolved in a
professional and expeditious manner.
In closing, GAO's leadership team is committed to continuous improvement
while avoiding constant change. As I said before, GAO is not perfect and
it never will be. We are, however, a leader in transforming many
management areas within the federal government, including the human
capital area. We are proud of this fact and plan to do everything that we
can, in partnership with our clients and employees, to stay that way.
Thank you for your time and attention. I would be happy to answer any
questions that you may have.
Appendix I
Organizational Results Measures
Measures Fiscal Year 1998 Fiscal Year 2006
Financial benefits (billions of dollars) $19.7 $51.0^a
Nonfinancial benefits (number of 537 1,342
actions)
Past recommendations implemented 69% 82%
New products with recommendations 33% 65%
Source: GAO.
Note: Additional years of data are available for comparison. See GAO,
Performance and Accountability Report, Fiscal Year 2006, GAO-07-2SP
(Washington, D.C.: November 15, 2006).
^a$51 billion dollars represents a $105 return on every dollar the
Congress invests in GAO.
Appendix II
People Measures: Attracting and Retaining Staff
Measures Fiscal year 2002^a Fiscal year 2006
New hire rate 96% 94%
Acceptance rate 81% 70%^b
Retention rate with retirements 91% 90%
Retention rate without retirements 97% 94%
Source: GAO.
Note: Additional years of data are available for comparison. See GAO,
Performance and Accountability Report, Fiscal Year 2006, GAO-07-2SP
(Washington, D.C.: November 15, 2006).
^aFiscal year 2002 was the first year in which GAO publicly reported all
four of these people measures for trend purposes. Prior to fiscal year
2002, data were not collected for either the new hire rate or the
acceptance rate.
^bThe acceptance rate was lower in fiscal year 2006 due, in large part, to
the uncertainty of our appropriation, which affected our ability to make
hiring offers in a timely manner.
Appendix III
People Measures: Developing, Using, Leading, and Supporting Staff
Measures Fiscal year 2002 Fiscal year 2006
Staff development 71% 76%
Staff utilization 67% 75%
Leadership 75% 79%
Organizational climate 67% 73%
Source: GAO.
Notes: These measures are based on responses to selected questions in
GAO's annual employee feedback survey, which was revised in 2002 to
reflect GAO's organizational realignment. While GAO conducted annual
employee feedback surveys prior to 2002, these prior instruments are not
comparable in their content or design.
Additional years of data are available for comparison. See GAO,
Performance and Accountability Report, Fiscal Year 2006, GAO-07-2SP
(Washington, D.C.: November 15, 2006).
Appendix IV
Excerpts from Case Studies and Articles Highlighting GAO's Human Capital
System
Published source Excerpted text
The IBM Center for The Business o "The interest in pay banding derives
of Government in substantial part from the
flexibility paybanding affords managers
"Designing and Implementing in matters of pay and classification.
There is widespread agreement among
Performance-Oriented Payband those who have examined compensation
practices in the federal government
Systems" that the approach embodied by the
traditional General Schedule (GS) is
James R. Thompson obsolete. A common complaint is that
the system is too rigid and that the
Associate Professor 15-grade structure induces excessive
attention to minor distinctions in
Graduate Program in Public duties and responsibilities that can
affect how a position is classified."
Administration o "Another concern is that pay
increases are granted largely on the
University of Illinois at basis of longevity rather then
Chicago performance."
o "The GAO and DoD systems link the pay
May 2007 of their employees more explicitly to
the market then do the systems in the
other agencies. The intent is both to
insure that they can compete for talent
and to avoid paying more than is
necessary to get the talent."
o "GAO has the most sophisticated of
the eight systems reviewed here."
o "GAO's system is one of only two that
are explicitly market-based. GAO
determines a `competitive pay rate,'
which represents the market median for
positions within each band. The amount
of performance-based compensation is
calculated as a percentage of the
competitive pay rate."
o "The standardization of rating
averages by pay groups, which makes
rating consistency across groups less
important and which de facto identifies
relative levels of performance within
each group."
o "Similar to GAO, at the Navy
Demonstration Project, the link between
the overall rating and the pay increase
is direct; no additional intervention
by the supervisor is required at the
pay setting stage."
o "GAO follows a private sector
practice by conducting surveys to
determine the market rate for each
occupational group."
o "Of the eight systems reviewed here,
only GAO's is market-based: Salaries
are periodically adjusted according to
compensation levels for similar
positions in the private sector."
o "Several of the agencies included in
this study use boards of senior
managers to review ratings across
units. GAO's system, on the other hand,
does not assume or require rating
consistency. The standardized rating
score on which each employee's pay
increase is based is a function of
relative performance within each
employee's work group."
o "GAO does not use pay pools.
Adjustments to ensure that salary costs
stay within budgeted amounts occur only
at the top. The comptroller general
determines both the `annual adjustment'
analogous to the general pay increase
received by GS employees and the
`budget factor,' which figures
prominently in the calculation of
individual performance-based
compensation increases."
Harvard Business Review o "The Government Accountability
Office, or GAO, which investigates
"Change Management in other federal agencies and issues
Government" reports on their performance, adopted
many of the talent-management practices
Frank Ostroff found in the private sector."
o "To encourage GAO staffers to embrace
May 2006 new procedures, Walker focused on
incentives. GAO had been a place where
almost all employees received pay
increases largely on the basis of time
on the job and job classification or
grade, regardless of performance. Now,
compensation is structured on
market-based salary ranges, and
employees are rewarded for expertise,
leadership, increased responsibility,
and other contributions to
performance."
o "At GAO, for example, David Walker
began by talking with Congress and the
agency's two key internal groups- the
agency's managing directors and the 25
employee representatives who sit on the
Employees' Advisory Council. `We talk
about what we need to do. I discuss it
with them live so that they can provide
input and ask questions.'"
o "As Walker puts it, `I find that
often you have more flexibility than
people believe. Many rules, as well as
civil service limitations on what you
can and can't do, are good, and they
need to be followed. But there is a
difference between what you can and
can't do and what has been done and not
done in the past.' As reported by GAO,
during Walker's tenure, that agency has
roughly doubled savings achieved and
resources freed up from $19 billion per
year to $40 billion at other agencies
as a result of its recommendations."
IBM Center for the Business of o "Many close observers of federal
personnel systems believe GAO has a
Government significant amount to offer in
answering questions around public
The Transformation of the sector human capital reform. `GAO is
Government worth paying attention to,' says Steve
Nelson, director of the Office of
Accountability Office: Using Policy and Evaluation at the Merit
Human Systems Protection Board. `They've been
well ahead of other federal agencies in
Capital to Drive Change implementing changes, including large
ones like pay for performance and going
Jonathan Walters to market based pay.'"
o "Nobody interviewed for this report
Governing Magazine complained about being underpaid;
indeed many staff said that the
Charles Thompson combination of interesting work and
decent pay and benefits made GAO a very
IBM Business Consulting attractive place to be."
Services o Remarks attributed to Colleen Kelly,
President of the National Treasury
July 2005 Employees Union regarding GAO's human
capital transformation: `If the
administration were really sincere
about improving human capital
management, they would pay closer
attention to what's gone on at GAO.'"
Partnership for Public Service o "GAO has some of the best analytical
talent in the country. More then 60
Case Study "GAO: Leading by percent of its 3,000-plus employees
Example" have master's degrees and PhDs, and
their expertise covers the entire range
November 5, 2003 of federal government programs."
o "GAO's strategic objectives and
annual operating objectives are now
strongly linked to its performance
appraisal system through the use of a
competency approach as the centerpiece
of its performance management and all
other human capital systems."
o "In GAO's performance management
process, the employee is front and
center. They are expected to play an
active role in defining their annual
goals and performance expectations.
Moreover, employees' self-assessments
of their own performance serve as the
starting point for formal evaluations."
o "After the close of the first year
under the new system, GAO gathered
feedback from its Employee Advisory
Council and Managing Directors about
the results of the first performance
appraisal and management cycle. Based
on that feedback, several important
improvements to the system were made to
continue the change process."
Government Leader o "Walker's overhaul of GAO's job
classification and employee appraisal
"Walker takes GAO from systems links pay to market forces and
accounting to accountability" raises to job performance. Broad pay
bands have replaced the regimented
John Pulley General Schedule, which was created in
1949 to manage a largely clerical
May 14, 2007 federal workforce. The results is the
most far-reaching overhaul of pay and
job classification that any agency of
the federal government has undertaken."
o Remarks attributed to John Palguta,
Vice President of Policy at the
Partnership for Public Service: `At a
time when 70 percent of federal jobs
are professional or administrative,
linking pay to performance and
rewarding high achievers is overdue.
Kudos to GAO for trying to
demonstrate--very personally and very
aggressively--that this should be the
compensation system of the future. It's
a bold move on the part of GAO, and it
has caused some consternation within
the agency.'"
o Remarks attributed to Elizabeth
Singer, a member of GAO's Employee
Advisory Council: "The critics are very
intense, very vocal, very angry, very
bitter, but they do not represent the
majority opinion.''"
o Remarks attributed to Robert Tobias,
Director of American University's
Institute for the Study of Public
Policy Implementation: `If I'm in the
executive branch and I'm an appointee,
my focus is on creating public policy,
not implementing it. The Washington
Post focuses on fights in Congress, not
on agencies that do good work. A
sustained, focused attention on public
policy implementation was not present
until Walker came on the scene.'"
FCW.COM o "In response [to allegations that
GAO's survey did not include the same
"A question of ranking" questions posed to other executive
branch employees], Robert Tobias,
Richard W. Walker director of the Institute for the Study
of Public Policy Implementation, said,
May 2007 `That is not accurate. The three
questions in the GAO survey that we
used to provide an overall ranking [for
the Best Places to Work in the Federal
Government ranking] were the exact same
questions that were used in the federal
human capital survey.'"
Mike Causey's Federal Report o "GAO has ruffled lots of feathers in
its day doing its duty. But most people
May 9, 2007 conceded it is one of, if not, the best
run operations in government. But even
in the best places, not all the troops
are always happy."
o "Washington attorney Bill Bransford
says the small number of complaints may
be an indication that GAO has a winner.
Comptroller General David Walker said
the PFP [pay for performance] system
must have reviews and a safety valve,
and Bransford, whose firm specializes
in helping feds in trouble, says `it
appears to be a good program.'"
o "Anyhow after the dust settles, it is
likely that GAO will turn out to have
the best PFP system in government. It's
a highly-trained, motivated place with
lots of talented people and a boss,
Comptroller General David Walker, who
has a number of strengths."
Partnership for Public Service o "We know that the GS [General
Schedule] pay system and the
Written Testimony of Max Stier traditional performance management
system is in need of reform by
President and CEO, Partnership listening to federal employees
for themselves. In OPM's 2006 Federal Human
Capital Survey, to which over 50,000
Public Service DOD civilian employees responded, less
than one-third (31 percent) agreed that
Prepared for the House `In my work unit, differences in
Committee on performance are recognized in a
meaningful way.'"
Armed Services Subcommittee on
Readiness hearing: "The
National Security Personnel
System: Is it Really Working?"
March 6, 2007
Government Leader o "There have been pockets of success:
at the Federal Aviation Administration,
"Pay for the Right Results" the IRS, the National Institute of
Standards and Technology and the
Wyatt Kash Government Accountability Office. Each
demonstrated that progressive
January 13, 2006 leadership could break the chains of
the General Schedule system and attract
and retain the talent government needs.
Indeed, more then 90,000 federal
workers are now in some form of
performance-based pay system."
o "GAO and its chief, David Walker, are
widely credited these days with doing
the job right. Critics quickly dismiss
GAO for having some distinct
advantages: its workforce is small,
relatively homogenous and highly
educated. But the lessons of GAO--and
the principled approach of comptroller
general Walker... offer important
leadership examples worth emulating."
Federal Times o "GAO's first, and possibly most
important, step was to institute a
"GAO's Worthy Example" credible performance appraisal
system--three to four years before it
November 28, 2005 attempted to tie performance to pay.
Having established that system during
the three years that followed, the
agency is now ready to tie that system
to pay raises."
o "GAO leaders also avoided making
decisions by fiat. Walker invited
employee input at open meetings,
through advisory councils and by
circulating draft plans that invited
comments. Employee suggestions were
then incorporated into the final plan."
Source: GAO synthesis of published sources, as noted.
Appendix V
Disposition of Band II Staff Initially Placed in Band IIA on January 8,
2006 Projected Through 2012
Notes: Figures represent staff counts going into the annual adjustment and
PBC process each January after the salary ranges have been adjusted
upward. Thus, staff in the IIT range are those who would receive no annual
adjustment that cycle.
Calculations assume 3.19 percent annual adjustments; 3.19 percent salary
range growth; 2.15 percent PBC (with 75/25 allocation); and current IIT
rules.
The actual transition period could be shorter if persons are placed in
Band IIB before the adjusted pay cap for Band IIA catches up to the Band
IIT cap.
Appendix VI
GAO's Ranking among Large Federal Agencies, by Demographic Group
Demographic category Ranking
Overall 2
African-American 2
Hispanic 2
Asian 6
Female 2
Source: GAO.
Appendix VII
Examples of Employee Outreach Related to the Classification and
Compensation Review and Band II Restructuring Efforts
2002 o
August o Employee Advisory Council and Executive Committee conduct
regular quarterly meeting: begin to discuss the feasibility
of splitting the Band II level.
December o Employee Advisory Council and Executive Committee conduct
regular quarterly meeting: discuss the role of the EAC in
future discussions of splitting the Band II level. Also
discuss that the project will not get under way until
calendar year 2003 and that no changes are expected until
2004.
2003 o
April o Executive Committee conducts three town hall forums with
Band II staff to discuss human capital reforms.
o Explanation for Human Capital II legislation posted to GAO
Intranet for all employees.
May o Questions and Answers document for Human Capital II
legislation posted to the GAO Intranet for all employees.
June o Memo on proposed reforms to the performance management
system, based on Employee Advisory Council and Managing
Directors' feedback, posted to the GAO Intranet for all
employees.
September o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss the distinction between jobs
performed at the Band II level.
December o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss status of congressional action
related to Human Capital II legislation; note that a project
team (Band II Advisory Group) had been formed to study the
Band II split, with EAC representation, and that the earliest
the split will happen will be October 1, 2004.
2004 o
January o Comptroller General conducts "CG Chat:" discusses the
planned split of the Band II level into two bands--one for
those who act as Analysts-in-Charge on a recurring basis and
one for those who function primarily as Senior Auditors,
Analysts, and Investigators, and occasionally serve as
Analysts-in-Charge.
o Detailed work plan on Band II restructuring posted to the
GAO Intranet for all employees.
February o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss the reasons for the proposed Band
II split and note that the split likely will occur between
October 2004 and January 2005.
o Executive Committee conducts special town hall forum with
Band II staff.
o Executive Committee conducts meeting with Advisory Group on
Band II restructuring.
March o Executive Committee conducts special town hall forum with
Band I population on Band II restructuring.
o Executive Committee conducts special town hall forum with
Band IIs to discuss the compensation and classification
review.
April o Comptroller General conducts "CG Chat:" discusses the
upcoming classification and compensation review; how it
evolved from the "Band II split;" and its underlying
objectives, principles, processes, and time frames.
May o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss the status of the Band II Advisory
Committee's efforts and the fact that the group will not meet
again until the Classification and Compensation Review (CCR)
is complete (planned for summer 2004), note that January 2005
will be the earliest date for implementing any CCR results,
and add that no employee's pay would be cut, including
locality pay. Employee Advisory Council members asked to
provide input by June 2004 on the kinds of organizations that
GAO should consider for pay comparison.
July o Comptroller General conducts "CG Chat:" provides a status
report on the CCR.
o Contract awarded to Watson Wyatt for compensation study.
August o Watson Wyatt briefs the Managing Directors.
o Watson Wyatt briefs the Employee Advisory Council.
o Watson Wyatt conducts approximately 35 hours' worth of
meetings with Career Stream Focal Points.
September o Comptroller General conducts "CG Chat:" discusses CCR and
notes that starting with the next pay adjustment for
Analysts, Attorneys, and Specialists, all pay categories will
be eliminated and all performance-based pay increases will be
made on an individual-by-individual basis.
October o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss the hiring of Watson Wyatt to
start the CCR and note that the study is expected to be
completed by the end of the month.
o Comptroller General conducts "CG Chat:" discusses
performance appraisal and pay issues.
o Watson Wyatt briefs employees on compensation design
elements.
November o Watson Wyatt conducts meeting with the Executive Committee
and Managing Directors on GAO's adaptation of their findings.
December o Comptroller General conducts "CG Chat:" shows briefing
slides to explain how GAO will use Watson Wyatt's findings to
determine salaries for Analysts, Attorneys, and Specialists.
2005 o
January o Comptroller General conducts "CG Chat:" explains how pay
adjustments will be made; explains methods used to calculate
2005 performance based compensation increases for Analysts,
Attorneys, and Specialists; explains the concept of
standardized rating scores.
April o Employee Advisory Council and Executive Committee conduct
quarterly meeting: discuss a future briefing for the Employee
Advisory Council by the end of April on the proposed plan for
updating the roles of Band IIA/IIB; the selection criteria;
and the process for initial placement. Also request that the
Employee Advisory Council nominate three of its members to
serve on a GAO-task team related to Band II restructuring
that will convene in May.
May o Comptroller General conducts "CG Chat:" reviews plans for
next year's pay adjustments for Analysts, Attorneys, and
Specialists; announces plans for placing Band II staff
members in IIA and IIB salary ranges, establishing a career
path for Written Communications Specialists, and developing a
process for Communications Analysts to transfer to Band IIA
analyst positions. CG also released a project plan to (1)
make the initial placements to implement the Band IIA and
Band IIB market-based compensation ranges, (2) establish a
career path for Written Communications Professionals, and (3)
provide a process through which Communications Analysts may
apply for a transfer to generalist analyst positions at the
Band IIA level.
o Project plan for Band II restructuring posted to the GAO
Intranet for all employees.
June o Project plan and announcement of employee task teams'
creation to study and develop proposals to implement Band IIA
and IIB market-based compensation ranges for Analysts and
Specialists posted to the GAO Intranet for all employees.
July o Executive Committee and Employee Advisory Council conduct
quarterly meeting: discuss topics for July 15, 2005, "CG
Chat" and provide an update on the Band II restructuring
effort.
o Comptroller General conducts "CG Chat:" notes that the
Executive Committee will review reports from the task teams
established to develop recommendations for the roles and
responsibilities of Band II Analysts, Specialists, and
Communications Professionals.
o "Phase I" draft proposals for identifying the IIA and IIB
roles and responsibilities for Analysts and Specialists and a
career track for Written Communications Professionals posted
to the GAO Intranet for all employees for comment.
August o Executive Committee conducts special town hall meetings
with all staff on Analyst proposals.
o Executive Committee conducts special town hall meetings
with all staff on Attorney proposals.
o Executive Committee conducts special town hall meetings
with all staff on Specialist proposals.
o Notice announcing that focus groups are forming to discuss
"Phase II" proposals for implementing Band IIA and IIB
market-based compensation ranges for Band II Analysts and
Specialists (to be effective January 2006) posted to the GAO
Intranet for all employees.
September o Draft Band II restructuring "Phase II" proposals for
identifying the criteria and process for placing Analyst and
Specialist staff in the IIB pay range posted on the GAO
Intranet for all employees for comment.
o Notice posted to the GAO Intranet for all employees
announcing the availability on the Intranet of the Band II
Restructuring roles and responsibilities for Senior
Analysts in the IIA and IIB pay ranges , Specialists in
the IIA and IIB pay ranges , and Communication Analysts
in the Band I and II pay ranges .
October o Questions and Answers document on the Band II restructuring
posted to the GAO Intranet for all employees.
o Draft GAO Order on the Band II Restructuring ,
containing the latest "Phase I" roles and responsibilities
and additional information about the "Phase II" straw
proposal regarding the criteria and process for initial IIB
pay range placement, posted to the GAO Intranet for all
employees to comment.
o Executive Committee and Employee Advisory Council conduct
quarterly meeting: CG notes that not many comments were
received on "Phase I" (roles and responsibilities) of the
Band II restructuring effort and reminds EAC members that the
GAO order on "Phase II" (criteria and process) is currently
out for comment.
o Notice posted to the GAO Intranet for all employees
announcing the extension of the comment period for the draft
GAO order on the Band II restructuring.
November o Executive Committee conducts special meeting with Managing
Directors on Band II restructuring.
o Comptroller General conducts "CG Chat:" announces the kick
off of an accelerated process for placing current Band II
staff members in the IIA and IIB pay ranges by announcing
final decisions on the criteria and process to be used and
announces decisions about 2006 pay rates for Analysts,
Attorneys, and Specialists, with a warning that they were
contingent on GAO's final budget.
o Notice posted to the GAO Intranet for all employees
announcing the availability on the GAO Intranet of the slides
used in the previous day's "CG Chat."
o Draft GAO order related to GAO's administrative grievance
procedure, updated to include information related to the
restructuring of Band II, posted to the GAO Intranet for all
employees to comment.
o Notice posted to the GAO Intranet for all employees
announcing changes in eligibility requirements found in the
restructuring order and changes in the dates that Band IIB
selection panels would convene.
o Questions and Answers document on the Band II restructuring
for "Phase II" posted on the GAO Intranet for all employees.
December o Band IIB selection panels convene.
o Staff noncompetitively placed in Band IIB are notified of
their selection.
o Information describing the Band IIB reconsideration process
posted to the GAO Intranet for all employees.
2006 o
January o Effective date of reassignment for staff placed in IIB.
o Notice posted to the GAO Intranet for all employees to
comment announcing the procedures for Band IIB Placement
Reconsideration Requests.
o Notice posted to the GAO Intranet for all employees to
comment clarifying the status of Criminal Investigators
(series 1811) as a result of the recent Band II
restructuring.
o Comptroller General conducts "CG Chat:" reviews results of
Band IIB placements and notes that there will be other
opportunities for competitive placement in Band IIB--the next
one by the end of June and conducted at the same time as the
Band IIA promotion process; announces that a proposed
procedure for current Communication Analysts and PT-II staff
members to apply for certification as Band IIA Analysts, as
recommended by a special employee task force, will soon be
posted for comments. Notes that--based on the employee task
team's work--the Executive Committee decided not to employ a
certification process for moving staff from Band I to Band
IIA, meaning that for the time being, the process will remain
competitive and there will be no speed bump in the IIA pay
range.
o Executive Committee and Employee Advisory Council conduct
quarterly meeting: Employee Advisory Council members raise
concerns about how the selection criteria for the Band IIB
position were applied, inquires about how future rounds of
placements will be conducted, and notes the perceived
decrease in staff morale as a result of the restructuring.
Discusses the employee task forces' work related to a
certification process for Communication Analysts and APSS
staff interested in converting to Analyst positions.
o In response to issues raised by the Employee Advisory
Council, a memo providing additional information on the Band
II restructuring process; Personnel Appeals Board and GAO's
Office of Opportunity and Inclusiveness appeals processes and
filing deadlines; Managing Director feedback on central panel
results; and other related issues is posted to the GAO
Intranet for all employees.
o Staff who applied for reconsideration to be placed in IIB
are notified of decisions.
February o Comptroller General conducts "CG Chat:" reviews the results
of Band IIB reconsideration and discusses the rationale for
recalculating standardized rating scores to determine the
amount of performance-based pay for Band IIA and IIB staff
members.
o Employees file petitions with the Personnel Appeals Board
on Band II restructuring.
April o Executive Committee and Employee Advisory Council conduct
quarterly meeting: Employee Advisory Council members
summarize the results of their Band II outreach effort and
all parties discuss possibilities for how and when to post
the list of staff placed in IIB; discuss the process for
future rounds of IIB placement.
o Question and Answer document on the Band II restructuring
posted to the GAO Intranet for all employees.
May o Notice of the implementation of a uniform appraisal cycle
for Analysts and Specialists, based on feedback from the
Employee Advisory Council and the Managing Directors, posted
to the GAO Intranet for all employees.
o Revisions to Band IIB Performance Appraisal Standards
posted to the GAO Intranet for all employees to comment.
July o Comptroller General conducts "CG Chat:" announces that
subject to budget constraints, the Executive Committee is
considering various proposals: all GAO staff, regardless of
their salary level and their position within their pay band,
will be eligible to receive their full performance-based
compensation (currently, staff who are at or above their
applicable pay cap are not eligible for PBC). Notes that the
minimum merit percentage could be set at greater than 50
percent (current guidelines call for 50 percent of PBC to be
paid in merit or base pay). Also announces that speed bumps
will be eliminated in all pay ranges for both mission and
APSS staff, except for Band IIB. Notes that GAO staff will be
provided an opportunity to review and comment on these
proposals before they are implemented. Reviews results from
the first round of IIA and IIB placements following the
initial restructuring effort.
o Executive Committee and Employee Advisory Council conduct
quarterly meeting: review the proposed enhancements to the
compensation system that were discussed in the prior day's
chat.
October o Executive Committee and Employee Advisory Council conduct
quarterly meeting: discuss rating periods for staff recently
placed in IIB.
2007 o
April o The PAB cases, filed in February 2006 regarding the Band II
restructuring and involving 12 employees, are resolved via
settlement.
May o Watson Wyatt briefs the Employee Advisory Council.
Source: GAO.
Appendix VIII
Comparison of GAO's 2007 Banded Salary Ranges with 2007 GS Levels (All
Steps) for the Washington/Baltimore/ Northern Virginia Locality Area
GAO GAO GAOcompetitive GAOspeed GS ranges(all steps
band minimum rate bump GAO maximum within grade)
I^a $42,900 $60,600 N/A $78,200 $37,640--$86,801(GS 7-12)
IIA / $71,900 $88,300 N/A $104,700/$118,700 $79,397--$103,220(GS-13)
IIT^b /
$77,400
IIB $84,600 $108,400 $121,600 $132,200 $93,822--$121,967(GS-14)
III $107,200 $117,500 N/A $143,471 $110,363--$143,471(GS-15)
Source: GAO and OMB.
^aAnalyst ranges only. Does not include ranges for IT Analyst, Financial
Auditor, or Communication Analyst positions.
^bIIT is not a separate band, but rather a separate classification of
staff with unique salary circumstances.
Appendix IX
GAO Analyst and Related Staff Compared with the 2000 Civilian Labor Force
(CLF) Data (Note: GAO data as of October 1, 2006)
African Asian
American Hispanic Women
Total
GAO GAO % in % in % in % in % in % in % in % in
occupations staff CLF GAO CLF GAO CLF GAO CLF GAO
Analyst 1,816 5.87% 11.78% 5.71% 7.38% 3.58% 5.23% 38.61% 54.24%
Auditor 239 7.89% 13.81% 8.06% 11.72% 5.13% 7.11% 57.02% 53.56%
Computer
sci/telecomm 115 7.83% 13.91% 10.79% 19.13% 4.70% 6.09% 33.23% 50.43%
All other
analyst
related^a 256 7.98% 14.84% 9.63% 6.25% 5.05% 1.95% 39.62% 39.84%
Total 2,426 6.62% 12.41% 6.81% 8.24% 4.13% 5.11% 43.24% 52.47%
Source: GAO.
^aIncludes occupations like Economists, Financial Analysts, Criminal
Investigators, Statisticians, and other specialists with as few as 1 GAO
employee.
Appendix X
GAO's Diversity Profile among Senior Analysts, Assistant Directors, and
SES Level (Note: scales on vertical axes differ, reflecting the
differences in representation for each group)
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
GAO's Mission
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in meeting its
constitutional responsibilities and to help improve the performance and
accountability of the federal government for the American people. GAO
examines the use of public funds; evaluates federal programs and policies;
and provides analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents at no cost
is through GAO's Web site ( www.gao.gov ). Each weekday, GAO posts
newly released reports, testimony, and correspondence on its Web site. To
have GAO e-mail you a list of newly posted products every afternoon, go to
www.gao.gov and select "Subscribe to Updates."
Order by Mail or Phone
The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:
U.S. Government Accountability Office 441 G Street NW, Room LM Washington,
D.C. 20548
To order by Phone: Voice: (202) 512-6000
TDD: (202) 512-2537 Fax: (202) 512-6061
To Report Fraud, Waste, and Abuse in Federal Programs
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm
E-mail: [email protected]
Automated answering system: (800) 424-5454 or (202) 512-7470
Congressional Relations
Gloria Jarmon, Managing Director, [email protected] (202) 512-4400 U.S.
Government Accountability Office, 441 G Street NW, Room 7125 Washington,
D.C. 20548
Public Affairs
Paul Anderson, Managing Director, [email protected] (202) 512-4800
U.S. Government Accountability Office, 441 G Street NW, Room 7149
Washington, D.C. 20548
www.gao.gov/cgi-bin/getrpt?GAO-07-872T.
To view the full product, click on the link above. For more information,
contact David M. Walker at (202) 512-5500 or [email protected].
Highlights of GAO-07-872T, a testimony before Congressional Subcommittees
May 22, 2007
UNITED STATES GOVERNMENTACCOUNTABILITY OFFICE
Status of GAO's Human Capital Transformation Efforts
The subcommittees asked the Comptroller General of the United States to
discuss recent human capital reform efforts at the U.S. Government
Accountability Office (GAO). In 2004, GAO conducted its first ever
market-based compensation study after laying the necessary foundation by
implementing a modern, competency-based performance management system. GAO
hired a top compensation consulting firm on a competitive basis to conduct
a market-based pay study using generally accepted approaches and based on
independent and professional judgment. As a result of the study, the 2006
pay ranges for about 25 percent of GAO's employees were raised and about
10 percent of GAO's employees were determined to be paid above market
levels based on their roles, responsibilities, and/or relative
performance. No GAO employee has had his or her pay cut as a result of
GAO's classification and compensation changes. Still, GAO's approach to
market-based pay and related Band II restructuring efforts, which were
very challenging and likely unprecedented in government, have been the
source of considerable attention and some controversy.
GAO seeks to assist the Congress in improving the economy, efficiency,
effectiveness, ethics, and equity within the federal government. The
Comptroller General considers these important principles in connection
with all of his decision making relating to GAO. Furthermore, because GAO
audits, investigates, and evaluates others, it seeks to "lead by example"
in every major management area, including the human capital area. GAO
fully appreciates that it is not perfect and never will be, but it strives
to do what is right and to continuously improve.
While GAO's transformational human capital changes have required some
difficult adjustments, they, along with other key reforms, have helped GAO
to achieve record results for the Congress. Furthermore, GAO has continued
to achieve very positive results with its key people measures. For
example, on the basis of the results of GAO's latest employee feedback
survey, which was conducted after its classification and compensation
changes and Band II restructuring effort, GAO was ranked number 2 among
large federal employers in the most recent "Best Places to Work in the
Federal Government" rankings.
GAO is possibly the first major agency to implement broad banding,
market-based pay, and skills-, knowledge-, and performance-oriented pay
systems on an agencywide basis. This is a major accomplishment, and GAO's
reforms have been the subject of many positive case studies and articles
by various external parties on how to achieve tough transformation changes
within the federal government.
Nonetheless, the Comptroller General regrets that there were certain
expectation and communication gaps that occurred in connection with GAO's
initial implementation of market-based pay ranges and related
across-the-board pay adjustments in 2006. GAO has, however, taken numerous
steps to address this matter over the past year so that any such gaps
should no longer exist. Furthermore, the Comptroller General believes that
all of GAO's actions have been fully consistent with the law and
principles of economy, efficiency, effectiveness, ethics, and equity.
GAO has taken steps in the past year to provide additional opportunities
for pay increases to many employees. In addition, GAO will soon submit
legislation that will seek to enhance the pay and pension provisions
applicable to its employees.
*** End of document. ***